FTSM vs VYM
FTSM vs VYM
First Trust Enhanced Short Maturity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FTSM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $6.5B | $79.0B | |
| Dividend Yield | 4.14% | 2.86% | |
| Holdings | 634 | 568 | |
| YTD Return | +1.67% | +13.24% | |
| 1Y Return | +3.71% | +23.76% | |
| 3Y Return (annualized) | +4.69% | +16.97% | |
| 5Y Return (annualized) | +3.51% | +12.26% | |
| Volatility (annualized) | 1.2% | 14.6% | |
| Max Drawdown | -5.4% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 5, 2014 | Nov 10, 2006 |
FTSM vs VYM Performance
First Trust Enhanced Short Maturity ETF (FTSM) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FTSM returned +3.71% while VYM returned +23.76%. Year to date, FTSM is up 1.67% versus a gain of 13.24% for VYM.
Over three years, FTSM compounded at +4.69% per year against +16.97% for VYM; over five years the annualized figures are +3.51% and +12.26% respectively. Across the full 12-year window we track, VYM has the edge at +6.96% annualized vs +1.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.2% for FTSM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -5.4% for FTSM and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTSM charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, FTSM currently yields 4.14% against 2.86% for VYM.
Holdings Overlap
FTSM and VYM share 0 holdings out of 949 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTSM or VYM?
FTSM has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, FTSM or VYM?
Over the past year FTSM returned +3.71% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), FTSM annualized +1.45% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, FTSM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.2% for FTSM. Worst drawdown: FTSM -5.4% vs VYM -58.8%.
Should I hold both FTSM and VYM?
FTSM and VYM have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTSM and VYM?
FTSM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 949 unique securities.
Which pays a higher dividend, FTSM or VYM?
FTSM yields 4.14% while VYM yields 2.86%, so FTSM currently pays the higher dividend yield.
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